Pauls scoops up SoMa condo site

The Pauls Corp. has bought the stalled 51-unit condominium project at One Ecker Place in downtown San Francisco for $14 million and will spend $5 million more to finish construction and bring the units to market.

The acquisition comes two years after the previous development group, a joint venture led by Shimon Kabili, went into default on the mortgage. The previous owners had spent $13 million to buy the brick historic 1906 ice house and borrowed another $15 million to convert it to loft-style condos. Construction was about 70 percent complete when the lender, Amalgamated Bank, foreclosed on the property in 2009.

Pauls Corp. President Paul Powers said he was drawn to the modest size of the project, as well as its brick and beam architecture, high ceilings and location right off of First Street. More than 20 developers chased the broken deal, with Lowe Enterprises, Carmel Partners and the Emerald Fund all taking a run at it.

“There was a spirited competition for it,” said Powers.

The Pauls Co., is a Denver-based builder responsible for the 105-unit 88 South Broadway in Millbrae. It is also the group behind Peninsula Park in Redwood City, a controversial waterfront project that could also be under construction in the fall. The company develops throughout the Midwest, West Coast and Texas.

The acquisition of One Ecker Place comes as builders are worried that the fledging recovery could be stalled by the end of government-backed tax credits for home buyers, as well as continued jitters in the overall economy.

“There is no question there was a pause all around the country in May and June, but we are seeing some resurgence in July,” said Powers.

But Powers, a former Colorado state senator, said buyers will ultimately take advantage of low mortgage rates.

“The mortgage rates are the great driver (for buyers),” said Powers. “No matter what the market is like, we always seem to do well when mortgage rates are low.”

At One Ecker, the Pauls Corp. will upgrade the hardware fixtures, floor coverings and appliances. The building’s common areas — lobby, courtyard and shared roof decks — are also getting a more extensive landscaping. The design is by BDE Architecture’s Jonathan Ennis.

“It will be over the top — we will have a roof deck we think will be an award winner,” said Powers.

Palisade Builders, an offshoot of Douglas Ross Construction, will finish construction. Polaris Group will market the condos. Pricing will be in the $650 a-square-foot range, with the largest two-bedroom corner units priced about $800,000. Condo dues will range from $350-$600 a month. There is no parking.

Polaris Group Partner Chris Foley said the combination of new construction and historic materials will appeal to buyers.

“You have a cool little building right in the middle of downtown that is brick and timber,” said Foley.